Moody's Investors Service has revised the ratings of seven insurers in China and Hong Kong from stable to negative, and changed one Chinese insurer’s rating from positive to negative.
The ratings come after Moody's decided to change China's ratings from stable to negative on the Aa3 rating.
The affected insurers are: China Life Insurance Company; China Life Insurance (Overseas) Company; China Life P&C Insurance Company Limited; PICC Property and Casualty Company Limited; PICC Life Insurance Company Limited; China Pacific Property Insurance; ICBC-AXA Assurance Company; and BOC Group Life Assurance Company.
In addition, Moody's has affirmed all the ratings of the affected insurers and affirmed the a2 baseline credit assessment of China Life P&C Insurance Company.
The insurance financial strength rating of CNPC Captive Insurance Company remains on review for downgrade.
According to Moody's, the change in the Chinese sovereign rating outlook to negative is an indication that the central government's capability to support insurers on a broad basis could be weaker than previously assessed.
Moody’s also suggested that a return of a stable outlook for these rated insurers could be considered, if the rating outlook for China returns to stable.
